Why did Longjiang Airlines auction?

Under the impact of this year's epidemic, most enterprises in the world are affected, and airlines bear the brunt. Under the epidemic, the share price of airlines plummeted, more than 8,000 planes around the world were grounded, and more than 30 airlines went bankrupt. As a private airline, Longjiang Airlines has only five planes. Although it is not the smallest airline in China, it is not much different. Under the impact of such a fierce epidemic, the major airlines in the world have suffered heavy losses, not to mention Longjiang Airlines, so auction is the best choice.

One of the main reasons why Longjiang Airlines was auctioned was the impact of the epidemic. As we all know, this epidemic has caused countries to restrict travel. In addition to online industries such as network, other industries have been greatly affected, and the worst is the physical store industry and transportation industry. As the main mode of transportation for long-distance travel, airlines are greatly affected and are faced with the dilemma that there are planes but no one is sitting. A large number of routes have been cancelled, and aviation stocks have also experienced many plunge. Longjiang Airlines is naturally difficult to be immune, so it will choose to minimize losses by auction.

Secondly, Longjiang Airlines, as a private company established in 20 14, has a registered capital of only 800 million yuan, and there are only five airlines, making it one of the last airlines in China. Under the impact of the epidemic, several powerful state-owned airlines suffered heavy losses, not to mention the last private company. Therefore, the strength and nature of Longjiang Airlines itself is also a reason for auctioning Longjiang Airlines. Compared with state-owned enterprises, state-owned enterprises have strong impact resistance because of the backing of the state, and Longjiang Airlines is only a private enterprise, so it is difficult to survive this epidemic and it is reasonable to be auctioned.

Generally speaking, Longjiang Airlines was auctioned mainly because of the epidemic situation. Large airlines suffered serious losses and small airlines were on the verge of bankruptcy. The secondary reason is that the nature and strength of Longjiang Airlines make it difficult for him to protect himself.